Airfreight rates from Asia to the USA are on the rise in July and are expected to continue to increase through the remainder of the year.

Current TPEB market conditions are unlike years prior and, as a result, rates are not expected to follow normal peak/non-peak season trends. A primary factor, resulting in these unique conditions, is the cancellation of cargo aircraft flights and the complete termination of cargo aircrafts in rotation. This was done globally as a strategic move to rebound from all-time low freight load factor percentages that were experienced in 2016.

With less cargo space available in the air, demand has increased and naturally the rates have followed.There is also continued speculation that carriers are working closely together to manipulate the market, a ploy that would be prevented stateside through U.S. Antitrust Laws.

Written by Thomas Marano, National Airfreight Business Development Manager